NAIAD: Demonstrating and assessing the insurance value of nature-based solutions to prevent flooding and drought risks

09.26.2017

NAIAD (Nature Insurance Value: Assessment & Demonstration) is a research project funded by the European Commission's H2020 programme. The project involves 23 organisations from very diverse fields, including the French partners BRGM, IRSTEA, University of Nice and CCR (Caisse Française de Réassurance). The BRGM's responsibilities include development of the economic methodology and a demonstrator.

The NAIAD project is assessing the insurance value and advantages of nature-based solutions to improve the resilience of local areas to water-related risks, especially floods and droughts. These are expected to be multi-purpose solutions, in the sense that they not only reduce damage but also help to improve ecosystem functions and their use.

The project's work programme revolves around methodological developments and 9 demonstration sites in 8 European countries. These sites are local areas where the project will show the advantages of nature-based solutions (ecological engineering for example) over strategies relying entirely on grey infrastructure (such as dykes).

One of the two demonstration sites in France is the Lez river basin (Hérault département, S France), where active management of a karst zone will be analysed as a possible solution to reduce risks.

Studies will also be made to identify and assess regulatory, economic and financial instruments (such as payments for ecosystem services, green bonds, etc.) that would encourage adoption of these solutions.